The Indonesian Ministry of Environment has signed a memorandum of understanding (MoU) with the United Kingdom to strengthen collaboration on environmental protection, secured on the sidelines of the COP30 climate summit in Brazil on November 17, 2025. 

The UK expressed strong interest in providing technical support and climate financing to Indonesia as part of the new partnership.

According to the Environment Ministry, the agreement outlines strategic cooperation in several key areas, including environmental legislation and enforcement, improved air and water quality management, hazardous waste handling, and the development of circular economy approaches.

“We are exploring ways to bring new finance into carbon and nature markets. I was very interested to hear the Minister (Hanif) speak about Indonesia’s role in safeguarding tropical peatlands,” Mary Creagh, Parliamentary Under-Secretary of State for Nature at the UK’s Department for Environment, Food & Rural Affairs (DEFRA), said during the meeting in Belém, Brazil, on Monday, November 17, 2025.

The Environment Ministry welcomed the UK’s commitment to funding and technical cooperation. Support will include UK PACT for forest carbon credit development, the Forest Carbon Partnership Facility (FCPF) initiatives in Kalimantan and Jambi, and potential involvement through the Bio-Fund.

Both countries will also explore participation in multilateral financing initiatives such as the Friends of Cali Fund and the TFFF. In addition, the UK will provide up to US$5 million (Rp83.55 billion) through the Climate and Clean Air Coalition to support clean-air programs, including methane capture projects from palm oil mill effluent (POME).

To address plastic pollution, KLH highlighted the need to strengthen Extended Producer Responsibility (EPR) mechanisms. DEFRA expressed its support by encouraging UK-based companies to improve packaging management in Indonesia through policy exchange, technology transfer, and facilitation of international buyer–seller engagements.

Both sides agreed to explore EPR pilot programs and local capacity-building initiatives, as well as collaboration with global brands to improve packaging transparency and product claims.

“Together we will tackle plastic pollution and open new financing pathways for nature-based carbon markets. We look forward to welcoming the Minister and his team to the UK next year,” Mary said.

The Environment Ministry and DEFRA will next prepare operational annexes detailing priority programs for the next 12–18 months, project financing mechanisms, and Terms of Reference for a Joint Steering Committee.

Early priority areas include the EPR packaging pilot, provincial circular economy programs, and carbon finance feasibility studies − covering FCPF work in priority locations and a demonstration project for methane capture from POME.